According to the watchdog Good Jobs First, which tracks companies receiving subsidies from the U.S., from 1991 to 2020, Chinese companies have received $1.8 billion from U.S. government bodies.
The subsidies provided were tax credits, tax rebates, grants, loans, and property tax abatement. While most of the support came from the state and local governments, some were given by federal bodies.
China is well known for unfair trade practices; some are illegal, such as intellectual property stealing, forced technology transfer, or price dumping.
According to the Commission on the Theft of American Intellectual Property, “China (including Hong Kong) accounts for 87% of counterfeit goods seized coming into the United States.”
The Commission also estimated that the intellectual property thefts from China cost the U.S. from $225 billion to $600 billion every year.
The President of Washington-based think tank Information Technology and Innovation Foundation, Robert Atkinson, told NTD that the U.S. must reverse the trend.
Good Jobs First also reveals that two of those companies are Chinese state-owned enterprises, the Aviation Industry Corp of China (AVIC) and China National Chemical Corp (ChemChina).
The U.S. Department of Defense identified AVIC as having ties to the Chinese military. It is also on the U.S. investment blacklist.
AVIC has two major parts; one specializes in making bombers and fighter jets, while the other focus on producing smaller aircraft and helicopters.
According to SCMP, the company has more than 100 subsidiaries, 23 listed companies, and more than 450,000 employees, more than Boeing and Airbus combined.
In terms of international business and trade, the research found that China “uses a two-pronged strategy to promote China’s state-owned enterprises at the expense of multinational companies (MNCs) doing business in China and other foreign countries.”
The study noted that “within its borders, China uses the Anti-Monopoly Law and the Anti-Unfair Competition Law to pressure, harass, and intimidate MNCs.”
In addition, China uses the Anti-Monopoly Law to force foreign-invested firms to transfer advanced technologies to their state-owned companies.
China also applies this law to protect well-known Chinese brands from foreign company acquisitions.